How To Pay Your Debts

[JunkBuyersWorstNightmare]

I think the biggest misconception with Collection agencies is that a lot of people (including me before CB) believe that they buy YOUR debt from YOUR original creditor for the full price or close to it so you think you still owe that amount.

 

Another misconception might be that some people believe that Collection agencies are HIRED by your Creditor to get their money for them. Just remember, they have no authority and YOU never opened an account with them, so YOU owe them NOTHING!

 

I am extremely thankful I found Creditboards, when I was new I didn't read enough first and posted about how to PFD on a collection. I got slammed here because I didn't know, I took it with a grain of salt and read some more and got advise and finally got a collection wiped off my reports after I sent a validation letter.

 

Also, I can see where people are coming from when they say that they want to pay the debt, because I did too, until I learned that the original creditors sell debts for pennies on the dollar and WRITE OFF the rest...so, YOUR ORIGINAL HAS ALREADY BEEN PAYED for your debt that is now in collections.

 

And remember if you are new here (I know I'm no expert here) just READ, READ, READ and use the Search button up in the red bar

 

 

 

[nikfrz]

Great debate going on here. As someone mentioned earlier- This should be in the stickies!

[JunkBuyersWorstNightmare]

Great debate going on here. As someone mentioned earlier- This should be in the stickies!

 

 

It IS in the stickies.

[Alivecomic]

 

I thought this was a legit thread, until I read Why's 1st post.

 

I am SO glad I wasn't the only one.

 

Very informative.

[elyse449]

I have a quick question?

 

Under what circumstances would it be advised to pay a bill, than? I mean the way our system is set up it's obviously NOT to our benefit to pay old CA's a darn thing, but I'm just wondering what bills are "acceptable" to pay.

 

Example; accounts you KNOW are yours that JUST went to a collection agency? Obviously it's optimal to get the OC to work it out with ya, but what if they won't? What if you have the CA on NO violations?

 

Just wondering...I'm sorta at a stalemate w/ my credit repair. Three CA's (on my CR, not counting DH's) that I just have to let age off...the darn debts are 5+ yrs old, can see NO point in paying them but I can't get them deleted either.

 

Oh well, I'm of the mindset that CA's need to be avoided at ALL costs. Pay it before collections if you owe it. I want to be a responsible consumer...but I don't want to get up the rear with a broomstick and no vaseline either.

 

Elyse

[Why Chat]

I have a quick question?

 

Under what circumstances would it be advised to pay a bill, than? I mean the way our system is set up it's obviously NOT to our benefit to pay old CA's a darn thing, but I'm just wondering what bills are "acceptable" to pay.

 

Example; accounts you KNOW are yours that JUST went to a collection agency? Obviously it's optimal to get the OC to work it out with ya, but what if they won't? What if you have the CA on NO violations?

 

Just wondering...I'm sorta at a stalemate w/ my credit repair. Three CA's (on my CR, not counting DH's) that I just have to let age off...the darn debts are 5+ yrs old, can see NO point in paying them but I can't get them deleted either.

 

Oh well, I'm of the mindset that CA's need to be avoided at ALL costs. Pay it before collections if you owe it. I want to be a responsible consumer...but I don't want to get up the rear with a broomstick and no vaseline either.

 

Elyse

 

Opt Out

Delete old addresses if possible

 

On "old" accounts ( other than medical) that are past YOUR State's LEGAL SOL, ( look it up on my website), follow the SOL dispute program.

 

http://whychat.5u.com/nottoca.html

 

Be sure to send the SOL dispute letter first.

 

On medical accounts use the HIPAA program:

 

http://whychat.5u.com/hipltr.html

 

Be sure to send the medical dispute letter first

 

If it is too late for you to deal with an OC on recent debts, then make sure that ANY arrangements you make with a CA are in writing BY THEM and that you do NOT make any "settlement" agreements with any CA unless and until you run it by the experts on this forum.

[frank10b]

Is there a way to get old addresses removed from your credit report?

[Ragincajun]

You can send a dispute to the CRA, and ask that your old address be taken off.

[mallaparte]

I signed up with Lexington Law which is a firm specialized in credit repair. I have checked my records on

all

three credit agency and the law firm has already sent out on my behalf the necessary letters to ask for the validation of the disputed debt. Lexington has contacted the CRA but not the creditors. Should I ask them to contact my creditors as well and inform them that actions were taken to request the validation of their claim? Following these actions the CRA should make sure all collection activity on my account will cease and the information should be removed from all three reporting agencies until written verification has been provided to me? Is that right? How long does it take for the CRA to take such measure?

Am I right? I anyone can help. Please do.

[Why Chat]

I signed up with Lexington Law which is a firm specialized in credit repair. I have checked my records on

all

three credit agency and the law firm has already sent out on my behalf the necessary letters to ask for the validation of the disputed debt. Lexington has contacted the CRA but not the creditors. Should I ask them to contact my creditors as well and inform them that actions were taken to request the validation of their claim? Following these actions the CRA should make sure all collection activity on my account will cease and the information should be removed from all three reporting agencies until written verification has been provided to me? Is that right? How long does it take for the CRA to take such measure?

Am I right? I anyone can help. Please do.

It is appropriate that "mallaparte" posted in this thread, which is designed as a SATIRE for those who pay $$ they don't have to in order to achieve 0 results on credit repair.

 

Credit repair Companies like Lexington Law don't do anything that you can't do for yourself, and with better results at 0 cost following the advice on this forum.

[Khiosan]

Do have any advice on how to write a good will letter to a Mortgage Company requestin them to removal a late paymet posted on your credit report?

[Khiosan]

any advice on how to write a good will letter to request a mortagage company to removal a late payment on your credit report?

[Jen23514]

an oldie but goodie, ready for a bump!

[Jen23514]

still relevant in 2011....

[clambert1273]

OMG I loved this thread... completely forgot about it lol

[cashnocredit]

My view is that the whole JDB and OC debt collection process is grossly inefficient lending itself to abuse by creditors and debtors alike.

 

I think there should be standards of documentation that simplify the process of determining if a debt is valid or not. Especially if it's litigated. There should also be conforming statutes of limitation amongst the states. When debts are no longer legally collectable that should be the end of it. The threshold for 1099-Cs should be raised to at least $10,000. There should be clarity regarding whether or not a debt can be sold and for how long. This is now implicit and legal but should also be explicit. It should be a written part of the consumer's contract. Penalties for violating the federal debt collection law should be increased for clear abuse but the catch-22 sections need to be addressed. Dunning letters threatening to sue (or those implying the same) should be folllowed up by a suit. Empty threats and especially abusive empty threats, like threatening arrest, should have increasing penalties.

 

In other words, it should be easier to collect debts when people have the means to pay and harder when they don't. The latter is the worst because people that don't have the means to pay all their debts have to triage them and often the most abusive collector wins - litterally causing Peter to be robbed to pay Paul. That ain't right.

Edited July 20, 2011 by cashnocredit

[hegemony]

^^